International Trade Treaties
The Dominican Republic has joined the most important international trade agreements as part of its key strategy to position itself among the three fastest growing economies in Latin America. The Dominican economy will grow 5.5% in 2019, ECLAC reported on Wednesday, which reduced the growth outlook for Latin America and the Caribbean from 1.3% to 0.5% for this year due to poor investment performance, exports, to a fall in public spending and a weak world economy. This year there will be a general deceleration that will affect 21 of the 33 countries in the region, according to the Economic Survey for Latin America and the Caribbean 2019 that the Economic Commission for Latin America and the Caribbean (ECLAC) presented in Santiago de Chile.
Many strategic engines that generate growth are underway economic of the country. The development and promotion of free trade zones is a basic pillar to boost growth, attracting goods that will be sold in other countries. Further on you will find more information about trade agreements and their role in the Dominican Republic.
The Free Trade Agreement between the Dominican Republic, Central America and the United States of America (FTA) is a treaty that promotes stability, prosperity and investment between the United States, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The purpose of the FTA is to expand and diversify trade, and increase investment opportunities among the members of each country, ensuring the protection of intellectual property rights and creating a commercial business framework.
This trade agreement is an essential tool for the development of the economy of the Dominican Republic, in addition to allowing the strengthening of its commercial relations. It has a consolidated preferential tariff regime for Dominican exports to the US market, and has led the Dominican government to transform the structures of its institutions, modifying the legal and commercial framework.
The FTA opens the market, reduces barriers in services, fosters competition and protects intellectual property rights. NAFTA is an important tool for foreign investors. The treaty clearly states that conditions, treatment and equal rights will be provided to both domestic and foreign investors in the signatory countries. When the registration is made in the correct terms, the FTA requires protection of the copyright, industrial property, and intellectual property of each individual. The treaty also specifies that any person from a country belonging to the agreement has the right to patent their own investments and discoveries, and will be protected by the law of the member country as a national investor.
The Economic Partnership Agreement (EPA) is a free trade agreement between the European Union (EU) and the Caribbean Forum (CARIFORUM), an organization of Caribbean nations that includes Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Saint Lucia, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, and the Dominican Republic. The EPA focuses on financial and investment opportunities, allowing tariff-free access to Caribbean products to the 28 countries that make up the EU.
The EPA provides assistance to Caribbean countries, fostering regional integration, reducing poverty, and encouraging the development of the global economy. The Dominican Republic entered the EPA in October 2008. Under the EPA, market access is asymmetric, protecting less developed nations from being devoured by trade with the EU. Exports from the Caribbean countries to the 28 countries of the EU are broad in quantity of products, while provisions for similar imports from the EU to the Caribbean are subject to restrictions of up to 25 years with the necessary safeguards. These guarantees protect local employment and the most sensitive industries in the Caribbean nations.
The EPA, together with the FTA, offers international investors and local producers in the Dominican Republic unprecedented access to free trade with two of the largest markets. of the world, that of the European Union and that of the United States.
The Caribbean Community (CARICOM ) is an organization composed of Caribbean nations, whose objective is the promotion of economic integration and cooperation among member countries. Signed in 1998 and ratified by the Dominican Republic in 2001, this treaty establishes free trade zones in the region, respecting the guidelines of the World Trade Organization (WTO). Trade between the Dominican Republic and the more developed Caribbean nations occurs equitably and reciprocally, while acting differently in less developed nations such as Antigua and Barbuda, Belize, Dominica, Grenada, Montserrat, Saint Kitts and Nevis , Saint Lucia, Saint Vincent and the Grenadines and Haiti.
The free trade agreement between the Dominican Republic and CARICOM coexists with the EPA.
En 1998 se firmó un tratado de comercio entre la República Dominicana y los países de América Central: Costa Rica, El Salvador, Guatemala, Nicaragua y Honduras. Se ratificó en 2001. Este acuerdo permite el libre comercio de todos los productos originarios de cada región con la excepción de una lista registrada.
Signed in 1985, this free trade agreement with Panama did not enter into force until 2003. The agreement provides the benefits of liberalized trade for certain products.
1.Products that have free access to the markets of both countries (bidirectional products).
2. Dominican products that can be exported freely to Panama.
3. Panamanian products that can be exported freely to the Dominican Republic.
4.Products manufactured in free trade zones.
Free Trade Agreement with China: After the establishment of diplomatic relations between the Dominican Republic and the People’s Republic of China at the end of 2018, President Danilo Medina issued the first visit where 18 agreements were signed that aim to regulate and address in the economic and Mutual cooperation between the two nations, then cites the text of these agreements:
These are the eighteen agreements signed this morning between the Dominican Republic and the People’s Republic of China, with President Danilo Medina and his Chinese counterpart, Xi Jinping, as witnesses of honor.
The documents cover cooperation in financial, commercial, migratory, agricultural, educational, tourist, air navigation, among others.
These are the 18 agreements:1. -Memorandum of Cooperation in the Framework of the Economic Belt of the Silk Road and the Maritime Silk Road Initiative of the 21st Century.
- -Memorandum of Understanding between the Ministry of Foreign Affairs of the Dominican Republic and the Chinese Council for the Promotion of International Trade.
- -Memorandum of Understanding between the Ministry of Administrative of the Presidency of the Dominican Republic and the Ministry of Commerce of the People’s Republic of China in Strengthening Cooperation in the Infrastructure Sectors.
- -Memorandum of Understanding to Strengthen Cooperation in Zones of Economic and Commercial Cooperation between the Ministry of Foreign Affairs of the Dominican Republic and the Ministry of Commerce of the People’s Republic of China.
- -Memorandum of Understanding on Cooperation for the Development of Human Resources between the Ministry of Foreign Affairs of the Dominican Republic and the Agency for International Development Cooperation of the People’s Republic of China.
6.-Educational Plan between the Ministry of Foreign Affairs of the Dominican Republic and the Ministry of Education of the People’s Republic of China for the years 2018-2023.7. – Memorandum of Understanding between the Ministry of Agriculture of the Dominican Republic and the General Customs Administration of the People’s Republic of China, in the Area of Sanitary and Phytosanitary Measures.
- -Memorandum of Understanding on Agricultural Cooperation between the Ministry of Agriculture of the Dominican Republic and the Ministry of Agriculture and Rural Affairs of the People’s Republic of China.
Protocol of the Phytosanitary Requirements for the Export of Tobacco Leaves for Cigars from the Dominican Republic to the People’s Republic of China, between the Ministries of Agriculture of both countries.
- -Memorandum of Understanding between the Ministry of Culture and Tourism of the People’s Republic of China and the Ministry of Tourism of the Dominican Republic on the facilitation of group travel by Chinese tourists to the Dominican Republic.
- -Memorandum of Understanding between the University of Foreign Affairs of China and the Institute of Higher Education Specialized in Diplomatic and Consular Training (INESDyC).
- -Agreement between the Government of the Dominican Republic and the Government of the People’s Republic of China Regarding Aero Civil Transportation Services.
- -Memorandum of Understanding for Baseball Cooperation between the Government of the Dominican Republic and the Government of the People’s Republic of China.
- -Memorandum of Understanding of Sports Cooperation, between the General Sports Administration of the People’s Republic of China and Mirex.
- -Memorandum of Understanding on the Establishment of the Joint Commission for Economic, Commercial and Investment Cooperation.
- -Agreement on the Mutual Exoneration of Visas for Holders of Diplomatic Passports, Official Passports, Service Passports and Public Affairs Passports.
- -Memorandum of Understanding on the Mechanism of Cooperation between the Export and Import Bank of China and the Ministry of Finance of the Dominican Republic.
- -Cultural Cooperation Agreement between the Government of the Dominican Republic and the Government of the People’s Republic of China.
- -Memorandum of Understanding on Strategic Cooperation between the Ministry of Finance of the Dominican Republic and the Development Bank of China.